FDX Corp.'s Federal Express formed its first joint venture in China, called Federal Express-DTW Co. The venture is a 50-50 arrangement between it and partner Da Tian W. Air Service Corp., which is a government-owned company that coordinates freight shipments. China prohibits full foreign ownership in shipping and postal services. Financial terms were not disclosed. The venture began operating Nov. 1 at its Beijing headquarters and plans to open two branches in other cities by the end of next year and in 100 more cities by 2005. Through the venture, FedEx will be able to conduct sales, billing and other services directly with clients. Previously, it used agents, including Da Tian, to deliver cargo in China. FDX, based in Memphis, has estimated the potential of China's express-delivery market at $2 billion a year. FDX shares rose $1.50 to close at $44.75 on the Big Board.